Dollar hits 4-month high on strong US data

New York

THE dollar index rose to a more than four-month high on Friday as positive US data and weak readings from overseas prompted investors to re-evaluate the likelihood of a rate increase from the US Federal Reserve while other central banks are seen cutting rates or adding stimulus.

The rise gave the index, which measures the greenback against six major world currencies, its fifth straight weekly gain. The returning prospect of monetary policy divergence between the Fed and its global peers has buoyed the dollar in recent weeks.